The Dow Jones Industrial Average jumped more than 13% in two days as the White House and congressional leaders said they had agreed to a massive stimulus bill to combat the economic slowdown from the coronavirus pandemic.
Stocks came off their highs in the final minutes of trading after Sen. Bernie Sanders said he was prepared to “put a hold on this bill until stronger conditions are imposed on the $500 billion corporate welfare fund.”
Former Federal Reserve Chairman Ben Bernanke also said Wednesday the U.S. economy will experience a quick rebound after a “very sharp” recession. “If there’s not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound,” Bernanke told and added the current situation is “much closer to a major snowstorm” than the Great Depression.
He also acknowledged current Fed Chairman Jerome Powell moved quickly to stem the economic blow from the outbreak. “I think the Fed has been extremely proactive, and Jay Powell and his team have been working really hard and gotten ahead of this and shown they can set up a whole bunch of diverse programs that will help us keep the economy functioning during this shutdown period.”
Still, some investors think the number of global coronavirus cases needs to improve before the market can form a bottom.